Posts tagged ‘Mexico’
Analysis by Crossborder Group Finds Tijuana #1 City in North America for Medical Device Manufacturing Employment
FACT: there are 29 aerospace industry firms operating in the City of Tijuana, Baja California.
FACT: based on a company survey of each of those 29 firms, Crossborder Group found average Q2-2011 employment totaling 7,313 workers, making Tijuana the Mexican city with the largest number of aerospace cluster employees within 400 miles of the US-Mexico border.
These are just two of the many findings in a recent aerospace industry white paper developed by Crossborder Group for the City of Tijuana Economic Development Corporation (DEITAC) and released at this year’s Paris Air Show by DEITAC and Baja California business and economic leaders. As with most of Crossborder’s business projects, (more…)
Crossborder Group has released initial findings from their December 2010 (Winter Quarter) at-border surveys, conducted among nearly 1,000, randomly-selected northbound car, SENTRI, and pedestrian travelers at the San Ysidro and Otay Mesa Ports of Entry. These results (download PDF at right) highlight nearly 800 responses from Mexico-residing visitors into San Diego and their Christmas Holiday purchases in San Diego County.
“Since 2003 we’ve been surveying border crossers, and have repeatedly asked Mexican shoppers to estimate their household expenditures on Christmas gifts purchased in San Diego,” explains Kenn Morris, President of California-based Crossborder Group and it’s Mexico subsidiary, Crossborder NS, S de RL de CV. “This last Holiday season, Baja California visitors estimated that they’d spent $536 dollars per household on Christmas gifts purchased in San Diego — that’s an enormous and positive economic impact that the public should know about.” (more…)
The Mexican peso has reached its strongest exchange rate against the U.S. dollar since October 2008 — 12.07 pesos to US$1 — benefiting some in the domestic market, while bringing back some concerns about a “Super Peso” for those that are involved with (or depend upon) cash inflows from the United States.
As seen in the graph at right (developed by Crossborder Group and based on historic Banco de México peso exchange rate data [showing the official rate to resolve currency obligations]), the peso was last at these levels in early-October, 2008, during a time in which the peso depreciated by 20-30% from 10 pesos per US$1.
A variety of factors appear to be creating this peso-strengthening trend: a still-slow U.S. economic recovery, concerns about certain European markets (and the stability of the Euro), and the contrasting relative fiscal/economic stability in Mexico. In fact, recent efforts by the Calderon Administration to increase foreign reserves to over US$113 billion and secure a US$73 billion two-year line of credit from the IMF, while maintaining Government debt to just over 2% of GDP, will likely contribute to some continued strengthening of the peso for at least the first half of 2011.
A new Super Peso could lead to increasing costs for international visitors to Mexico, as well as a higher cost for production in the foreign-dominated IMMEX/maquiladora industry — potentially undermining some of Mexico’s competitive strength internationally. Crossborder Group will continue to track this issue throughout 2011, and can provide insights into potential impacts on your market or industry — contact us at answers[at]crossborderbusiness.com for more information.
We must admit: it’s nice when your work gets some recognition — so it was a real treat for our Mexico market research staff to see data from some recent industry research being used in by the San Diego Union Tribune in a recent article (“Tijuana group aims to change city’s image” – August 8, 2010, by Sandra Dibble).
While the print edition included two graphics (including some data we provided on the number of IMMEX/maquiladora firms in major Mexican cities), the online edition included the graph at right — which shows approximate employment numbers for various tech clusters in Tijuana based on research our team did over the last few months (including medical devices, aerospace, and others).
One piece of new information (which didn’t really get covered in the article) was our estimate of Call Center employment in Tijuana. This is an emerging industry not just in Tijuana, but other parts of Mexico as well — and one that has much potential for growth (particularly given the bilingual nature of the US-Mexico border States). Look for more research from Crossborder Group on this topic in the coming months….
New data from several major automotive manufacturers signals a recovery, and a shift toward expansion and increased foreign direct investment into Mexico’s automotive industry.
Mexico’s automotive sector experienced a steep decline in production and investment in 2009 due to the global economic downturn. In fact, by January of 2009, production of cars and light trucks had fallen to less than half of January 2008’s levels — a trend which continued throughout most of 2009. However, several major OEM’s have recently announced plans for production or supplier expansions in Mexico over next few years.
We’re proud to announce that one of the world’s largest manufacturer of miniature ball bearings — and a major supplier of cooling fans, precision motors and electrical component — has retained Crossborder Group for a country-wide analysis of Mexico’s manufacturing markets, and new sales opportunities. While not new to the Mexican market, this California-headquartered subsidiary of a major Asian company has contracted Crossborder to provide a state-by-state review of key manufacturing sectors (including both maquiladora/IMMEX and domestic manufacturers), regional industrial insights and strategic guidance, as well as survey-based feedback from potential customers companies in order to facilitate their growth in Mexico.